A Peek into Africa’s Multi-Million Dollar Automotive Repair Industry
According to Statista, the revenue generated from South Africa alone will amount to approximately 3.1 billion U.S. Dollars by 2023.
Africa’s auto repair industry generates billions of dollars alongside the continent’s auto importation industry. According to Statista, the revenue generated from South Africa alone will amount to approximately 3.1 billion U.S. Dollars by 2023.
It’s no surprise that we’ve seen auto repair startups like ServiceMyCar, Michanic and Mecho Autotech which today secured an undisclosed amount of funding from Ingressive Capital to enhance the performance of auto repair services on the continent.
Founded in 2019, Mecho fully launched into the market in April this year. The platform matches auto technicians with car owners to streamline the process of car maintenance and repair.
“We hope to solve the problem and close the gap between car owners, quality repair services and maintenance”, said CEO, Olusegun Owoade. Mecho was one of the African startups selected for the S21 batch of the famed Silicon Valley-based Y Combinator accelerator earlier this year.
The investment from Ingressive Capital, a seed-stage investment firm based in Lagos Nigeria, will help introduce the startup to large organisations and fast-track its growth.
“The partnership is of huge benefit to our company’s quest to actively build out a sales pipeline and business development. This is because Ingressive Capital will be providing support and networking opportunities by introducing Mecho to large companies running large fleets. I am happy because this will fast-track the growth of Mecho”, said Owoade.
Ingress Captical has made a series of strategic investments in Africa over the years. The investment firm provides seed funding for startups spanning fintech, gaming, health tech, real estate and more. It’s interesting to see how Ingress Capital investment in Africa’s auto repair industry will help drive innovations in that space.
Modor Intelligence reports that Africa’s automotive industry was valued at $28.45 billion in 2020, and it is predicted to grow at a CAGR of 5.55 percent to $39.87 billion by 2026.
This is an impressive forecast, considering that the COVID-19 pandemic had a devastating impact on the market, with the bulk of markets in the region struggling to recover.
READ ALSO: What Autochek’s Launch in Kenya Means for Africa’s Automotive Industry
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